JSW Steel will make the acquisition by way subscribing to non-voting Class B shares for an investment of US$120 million. M Resources said it will maintain voting rights and management control of the joint venture.
A further US$50 million investment from JSW Steel to M Res HCC (NSW) is also included in the investment terms.
“M Group is looking forward to completion of the acquisition from South 32 with GEAR, scheduled for September,” said Matthew Latimore, chairman and CEO of M Resources. “We are pleased to partner with JSW, one of the world’s largest steel mills. This partnership will support the investment and help supply India’s growing metallurgical coal demand.”
JSW Steel confirmed the news in a separate announcement, saying that as of Monday (August 12), the company’s board has approved the purchase. It sees the acquisition boosting its ability to source coal.
As part of JSW Steel’s investment, the company will receive a proportionate allocation of metallurgical coal exports.
Latimore affirmed that the acquisition is “unconditional” and is expected to be completed in September, emphasising its strategic importance in supporting investment and meeting market needs.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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